Thread: Forex and tax
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Old 03-15-2008, 06:47 PM
GreenTrader Tax GreenTrader Tax is offline
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C-Corps

C-Corps are not good entities for trading businesses.

Gains are subject to double taxation. The only way to avoid double taxation is to pay compensation to the owner, which causes payroll/SE tax; otherwise not due on trading gains.

Losses are trapped on the entity-level, whereas with a pass-through entity like an S-Corp, the losses pass to the individual owner for immediate tax relief.

There is no 60/40 tax rates.
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